Bitcoin needs a correction after breaking through key resistance levels. The market is still far from “euphoria”, which could push the price of cryptocurrency to $ 86,000 next year. Such conclusions are contained in the report of the company Stack Funds.
Analysts called the recent decline in the price of bitcoin by several thousand dollars “healthy”. In their opinion, market participants are still at the stage of “faith”, which will eventually turn into “euphoria”.
The research draws on Glassnode data on unrealized gains and losses. The corresponding graph is built on the ratio of the current bitcoin price to the market value of coins at the time of their last movement.
Data: Glassnode.
According to the Stack Funds methodology, “euphoria” corresponds to indicator values above 0.75 (at the time of writing, it is at the level of 0.60, which means “faith”).
“Optimism” corresponds to the range of values from 0.25 to 0.50, and “hope” – 0-0.25. Anything below 0 is “surrender”.
Stack Funds Research 26 Nov 2020 by Cryplogger on Scribd
Bitcoin price entered the “faith” stage in October, breaking the 0.50 mark. The market was at this stage throughout 2017, during which the price of bitcoin increased more than 20 times.
“At present, the indicator indicates that the market has only recently jumped into a new wave, re-entered the stage of“ faith ”at the end of October. Extrapolating the data from the previous bullish cycle, even if a quarter of a 2,250% move, would indicate that the price of bitcoin will soar to $ 86,000 next year, ”the report said.
Stack Funds is shared by many analysts. Quantum Economics founder Mati Greenspan considers the recent correction routine.
“A 17% pullback is pretty commonplace at this stage of the market cycle.”
A 17% pullback is rather tame for this stage of the cycle. #JustSayin pic.twitter.com/NpZWhrOujE
– Mati Greenspan (tweets ≠ financial advice) (@MatiGreenspan) November 26, 2020
Twitter account teklords wrote that a correction was urgently needed ahead of a new, possibly even more impressive, price pump.
#bitcoin
35 day pump. Now cooling off. This pullback is greatly needed. Daily RSI receding to mid level territory.
I have a feeling the the next pump will be even stronger.– teklordz (@teklordz) November 26, 2020
Some market participants are confident that the next Bitcoin correction will open up good entry points for altcoin trading supporters.
The next major #Bitcoin pullback is going to create some god tier #altcoin spot entries.
– Mayne of Tether (@Tradermayne) November 24, 2020
At the time of writing, the first cryptocurrency is trading at $ 17,770. The price has been consolidating for several days in a row after a rapid fall from the $ 19,000 level.
Cryplogger previously reported that whales are actively transferring coins from wallets to exchanges. This could herald a new wave of Bitcoin sales.
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